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Arm Holdings plc American Depositary Shares — Intrinsic Value & Fair Price

ARM
NASDAQTechnologySemiconductorsCIK 0001973239arm.comAbout ARM
Last close · Oct 16, 2026227.80−16.99 (−6.94%)
Market cap$243.3B
Model value · DCF · Perpetuity growth · 5y
17.56
Arm Holdings closed at $227.80 — overvalued by 1197% vs model.
12.79the model's range27.09

DCF · Perpetuity growth · 5y leads for a high-growth company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
6.83 – 83.19
Wall St. target
280.00 19% below
Above model, 1y
78 of 78 days

Price and model value

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What the marks mean
Daily close

Valuation models

price $227.80 · as of Oct 17, 2026

DCF · Perpetuity growth · 5y leads for a high-growth company — positive operating income and three years of positive free cash flow. How we value a stock walks through every input. The price is 1197% above the model value: the models see only the filed business, and a company priced on businesses with no revenue line yet is better taken apart, as Tesla is.

engine pkg:0.1.0

Research on ARM

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How it is valued

Valued asHigh growth
High revenue growth (~23% recent)Moderate margins (18% net margin)Highly cyclical earnings
What growth the price implies: the reverse DCF

Key figures

FY2026 · chosen for high-growth companies
Price / sales
49.1×
Revenue growth
22.8%
Gross margin
92.5%
Operating margin
18.5%
FCF margin
19.9%
EV / EBITDA
208×
Full financials

Analyst actions

third-party, quoted
09-09Piper Sandler · target320.00
08-25Raymond James · target641.00
07-31Rosenblatt Securities · target250.00
07-14HSBC · “Hold” from “Buy”downgrade
Ratings, targets and estimates

Comparable companies

by business, not by industry label
1 more company lists ARM as a comparable

The weekly

One email a week across every stock we cover: 13F filings, insider trades, earnings and new research. It covers the whole market, not just ARM. No account.

About Arm Holdings

Arm Holdings plc is a leading technology firm that conceptualizes, engineers, and licenses core processing unit (CPU) designs and complementary technologies. These foundational innovations are crucial for semiconductor manufacturers and original equipment manufacturers (OEMs) to develop their own products. The company's diverse portfolio encompasses microprocessors, comprehensive system intellectual property (IP) solutions, graphics processing units (GPUs), physical IP alongside its associated system IPs, various software offerings, development tools, and an array of supplementary services. Its technology underpins a wide spectrum of industries, including the automotive sector, advanced computing infrastructure, consumer electronics, and the burgeoning Internet of Things (IoT) landscape. Established in 1990, Arm Holdings plc maintains its corporate headquarters in Cambridge, United Kingdom. With a significant global footprint, Arm conducts operations across the United States, the People's Republic of China, Taiwan, South Korea, and numerous other international regions. Currently, Arm Holdings plc functions as a subsidiary entity of Kronos II LLC.

CEO
Rene Anthony Andrada Haas
Headquarters
Cambridge, CA
Employees
9,584
IPO
2023-09-14
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.